MODULE 4

Effectiveness of advertising,
Advertising Agencies, Ethics
What is Advertising Effectiveness?
Advertising effectiveness is a method used to
determine if a brand’s marketing efforts are hitting
the mark with its target audience and whether it’s
getting the best returns.
It enables brands to measure the strengths,
weaknesses, and return on investment (ROI) of
specific advertising campaigns, so the company can
adjust accordingly.
 Methods to measure effectiveness
1. Pre- and Post-Advertising Surveys
• Ask consumers about their awareness, attitude, or willingness to buy before and after
the ad campaign.
• Measures changes in brand awareness or perception.
• Example: Survey students on whether they know a new energy drink brand before the
ad and after the ad runs.

2. Sales Analysis
• Compare sales figures before and after the advertisement.
• Measures the direct impact of the ad on sales.
• Example: A shop sells 100 chocolate bars per week before the ad and 150 per week
after.

3. Customer Feedback / Inquiry Tracking

• Track calls, website visits, or messages generated by the advertisement.
• Measures customer interest and response.
• Example: A mobile app ad leads to 500 new downloads in a week
 Methods to measure effectiveness
4. Controlled Experiments (Test Marketing)
• A controlled experiment measures the effect of an advertisement by comparing two
similar groups—one group sees the ad (test group) and the other does not (control
group).
• For example, a Production House wants to promote a new movie. This method helps
determine the direct impact of the ad on customer behavior. Mall A displays banners
and social media ads (test group), while Mall B has no ads (control group). If Mall A sells
500 tickets and Mall B sells 300, the increase in Mall A shows that the advertisement
was effective

5. Online Metrics (Digital Advertising)

• Track how people interact with ads on digital platforms, such as clicks, likes, shares,
comments, and impressions.
• Example- a Facebook ad for a new energy drink may get 10,000 views, 500 clicks, and
100 shares. These numbers show how many people saw the ad, how many were
interested enough to click, and how many shared it with others, helping marketers
measure the ad’s reach, engagement, and online visibility.

6. Brand Recall / Recognition Tests

Advertising Agency
An advertising agency (or ad agency)
is an independent business that creates,
plans, and handles advertising and
promotional efforts for clients, offering
services like television, radio, online,
and outdoor advertising
Philip Kotler defines an
advertising agency as "a
marketing service firm
that assists its clients in
planning, preparing,
implementing, and
evaluating various
activities of an
advertising campaign".
TYPES
1. Full- service advertising agencies- Provides all services — research,
creative ads, media, PR, branding — everything under one roof.
2. Creative boutiques- Provides only creative ideas and ad designs, not
research or media buying.
3. Media buying agencies- Focuses on buying space/time in newspapers,
TV, websites, etc.
4. In -house advertising agencies- Company has its own ad department
instead of hiring outside.
5. Interactive advertising agencies- Creates ads that allow two-way
interaction with customers (games, polls, apps).
WHAT DOES AN ADVERTISER LOOK FOR IN
Client servicing Aspects such as ensuring timelines, understanding and implementing
strategies, having a result-oriented approach, team stability, good
knowledge about brand/market etc
Creative ability Aspects such as generation of new ideas, execution of ideas while retaining
brand values, keeping creative on strategy.

Account planning Means knowing the customer well, using research smartly, improving brand
ability communication, and actively finding ways to grow the brand.

360- Degree capability An agency can handle all types of communication — traditional, digital, and
direct — to reach customers wherever they are.

Partnering with client Aspects such as optimizing budgets, keeping brand growth in focus,
maintaining a consistent client servicing team for a long period of time.

Innovation and Aspects such as being a forerunner in advertising, making India visible on
thought leadership the global advertising map, innovating new modes of advertising etc

Investment in Aspects such as training, investing in a good work environment, investing in

employees new technology, overall exposure across categories

Business development Aspects such as being a forerunner in winning business pitches, retaining
ability existing accounts, generating more business from the existing clients.
 If an ad is illegal, offensive, misleading, or harmful to society, it has a strong chance
of being completely rejected before it’s published.

1. False or Misleading Claims – Ads that lie or exaggerate about what a product can
do.

2. Banned or Restricted Products – Ads for things that are not allowed, like
cigarettes or illegal drugs.

3. Offensive Content – Ads that hurt religious feelings, use bad words, or show
indecent images.

4. Unproven Health or Safety Claims – Ads saying a product can cure a disease or
keep you 100% safe without proof.

5. Attacking Competitors – Ads that insult or make false claims about other brands.

6. Exploiting Vulnerable People – Ads that trick children, the elderly, or other weak
groups.
 Advertising and
Society
Social responsibility in
advertising involves creating
ads that benefit society by
being honest, not misleading,
avoiding offensiveness, and
promoting positive change,
while adhering to ethical
standards like truthfulness and
legal compliance
 Social responsibility in advertising
•Societal Impact:
Advertisers should consider the broader
impact of their messages on society,
promoting positive changes and avoiding
harm.
•Honest Communication:
Ads should be truthful and not manipulative
or deceptive, accurately representing
products or services.
•Positive Influence:
Socially responsible ads can raise awareness
Ethical and legal aspect of advertising

Ethical
Principles
Ethical and legal aspect of advertising
Ethical Principles: Legal Compliance:
◦Truthfulness: Advertisements must be
Advertisements must comply
honest and avoid making false or
exaggerated claims. with all relevant government

◦Decency: Ads should not be vulgar, regulations and laws

indecent, or offensive to public
sensibilities.
◦Fairness: Advertisements should not
unfairly attack or discredit competitors.
◦Consumer Safety: Ads must not
promote dangerous products or
situations, especially those targeting or
As an independent, voluntary self-regulatory
organisation, The Advertising Standards Council of
India (ASCI) aims to ensure advertisements in India are
fair, honest and are compliant with the ASCI Code.
ASCI seeks to ensure that advertisements conform to its Code
for Self-Regulation, which requires advertisements to be legal,
decent, honest and truthful, and not hazardous or harmful,
while observing fairness in competition
The ASCI Code refers to the Advertising Standards Council of India
(ASCI) Code, which mainly speaks about how advertisements should be
made in India.

• Truthful and Honest → Ads should not mislead people with false claims.

• Decent and Not Offensive → Ads should not use bad language, images,
or content that hurts social/religious feelings.

• Safe for Consumers → Ads should not encourage dangerous practices or

harm health.

• Fair in Competition → Ads should not insult or make unfair comparisons

with competitor brands.
The Advertising Standards Council of India (ASCI) is a self-regulatory body, not a
government authority.
•ASCI’s role:
◦ They receive complaints about misleading, offensive, false, or unfair ads.
◦ Their Consumer Complaints Council (CCC) reviews the complaint.
◦ If the ad violates the ASCI Code, they direct the advertiser to withdraw or modify the
ad.

•Enforcement / Penal Action:

◦ ASCI itself does not have legal powers to impose fines or penal action.
◦ However, if the advertiser doesn’t comply, ASCI escalates the matter to statutory
authorities such as:
• Ministry of Information & Broadcasting (MIB)
• Consumer Protection Authority (CCPA) under the Consumer Protection Act, 2019
• Food Safety and Standards Authority of India (FSSAI) for food ads
• Drugs Controller General of India (DCGI) for medical ads
• TRAI for telecom-related ads

In short: ASCI handles complaints and recommends corrective action. Actual penal/legal
action is taken by government regulators (like CCPA, FSSAI, etc.) if required.
The ASCI Functions
1. Self-Regulation:
ASCI promotes self-regulation within the advertising industry, guiding advertisers to create
honest, fair, and truthful advertisements.
2. Complaint Adjudication:
It handles complaints from consumers and competitors regarding advertisements that
violate its code, with decisions made by an independent Consumer Complaints Council.
3. Guideline Enforcement:
ASCI develops and provides guidelines for various aspects of advertising, including those for
influencers and food products, to ensure ethical practices are followed.
4. Consumer Protection:
Its primary role is to protect consumer interests by preventing misleading, unfair, or
offensive advertisements.
5. Maintaining Industry Standards:
ASCI works to uphold public confidence in advertising by maintaining responsible
advertising practices and upholding fairness in competition.
6. Complementing Law:
ASCI's self-regulatory measures complement, but do not replace, statutory provisions and
existing laws.
7. Providing Advertising Advice:
It offers technical and non-technical advice to advertisers on the substantiation of claims in
their advertising materials, helping them adhere to the code.
Enactment of advertisements
Creating an advertisement involves a systematic approach to communicate a
product’s value effectively to the target audience. The process can be summarized
in the following steps:
Understanding the Product or Service
Gain a thorough knowledge of the product or [Link] features,
benefits, unique selling points (USPs), and positioning in the market.
Identifying the Target Audience
Determine the group of consumers the ad will target. Consider demographics
(age, gender, income), psychographics (lifestyle, preferences), and consumer
behavior.
Defining the Advertising Message
Decide what the advertisement should communicate. Focus on benefits
rather than features; create a clear, persuasive, and memorable message.
 Selecting the Media or Communication Channels
Choose the medium that effectively reaches the target audience. Options
include television, social media, print, radio, outdoor hoardings, and digital
platforms.
Designing and Creating the Advertisement
Convert the message into a creative and appealing [Link]
copywriting, visuals, slogans, jingles, or short videos to attract attention.
Pre-testing the Advertisement
Ensure the ad communicates effectively before full-scale release. Conduct
small surveys, focus groups, or feedback sessions.
Launching and Monitoring the Advertisement
Release the ad and evaluate its [Link] consumer response,
sales, brand recall, or engagement metrics.
THANK YOU